Over the previous week, the offshore wind energy sector within the U.S. obtained two main federal approvals that might add practically 5 GW to the grid.
On July 1, the Bureau of Ocean Power Administration (BOEM) accredited a building and operations plan (COP) for Avangrid’s 791-MW New England Wind 1 undertaking and 1,080-MW New England Wind 2 undertaking. On July 2, the company introduced a joint document of choice (ROD) for Shell New Energies and EDF Renewables North America’s 2.8-GW Atlantic Shores South offshore wind power undertaking offshore New Jersey—making it the nation’s ninth commercial-scale offshore wind undertaking to obtain the excellence.
A Massive Milestone for New England Offshore Initiatives
BOEM’s COP approval will allow the development and operation of Avangrid’s New England 1 and a pair of—a mixed 2.6 GW. The initiatives are located roughly 20 nautical miles (nm) south of Martha’s Winery, Massachusetts, and about 24 nm southwest of Nantucket, Massachusetts. “The COP for the 2 initiatives consists of as much as 129 wind turbine mills, as much as 5 electrical service platforms, and as much as 5 offshore export cables transmitting electrical energy to onshore transmission techniques within the City of Barnstable and Bristol County, Massachusetts,” BOEM mentioned.
Avangrid, an Iberdrola Group subsidiary, on Monday mentioned full federal approval of the COP for the New England Wind 1 “represents a essential milestone, and largely completes the federal, state, and native allowing course of” for the undertaking. The undertaking sited in federal lease space OCS-A 0534, roughly 30 miles south of Barnstable, Massachusetts, is “exceptionally superior and shovel-ready,” it famous.
The undertaking will notably border the 806-MW Winery Wind 1 offshore wind undertaking to the south. Owned a three way partnership comprising Avangrid and Danish Funding agency Copenhagen Infrastructure Companions, Winery Wind has marked outstanding progress because it kicked off offshore building in late 2022 15 miles off the coast of Martha’s Winery. Avangrid on Monday famous Winery Wind achieved steel-in-the-water in June 2023 and accomplished the nation’s first offshore substation in July 2023. In January, the undertaking marked first energy from the primary of its 62 13-MW GE Vernova Haliade-X wind generators. It’s anticipated to be absolutely operational later this 12 months.
Building of Avangrid’s New England Wind initiatives, nevertheless, will likely be decided by an offshore procurement course of collectively provided by the states of Massachusetts, Rhode Island, and Connecticut. The hassle stems from an October 2023 memorandum of understanding signed by the three states to collectively search offshore wind proposals “that may develop advantages for the area, seize price reductions by growing initiatives at scale, and become viable initiatives.” Avangrid submitted proposals to the procurement in March to construct the 791-MW New England Wind 1, pair it with a 1-GW New England Wind 2 undertaking for a large 1.9-GW undertaking, and extra bids for single-state procurements in Massachusetts, Connecticut, and Rhode Island.
The corporate on Monday famous that the “states are anticipated to announce chosen initiatives from the aggressive procurement in August 2024.” New England Wind 1 “is the one undertaking within the solicitation that has all federal, state, and native permits; the power to begin building in 2025; and ship energy by 2029.” it mentioned.
A Increase for New Jersey’s Offshore Objectives
Shell New Energies and EDF’s Atlantic Shores South wind undertaking consists of two wind power amenities. Atlantic Shores Offshore Wind Mission 1 would have a capability of 1.5 GW, and whereas Atlantic Shores Offshore Wind Mission 2’s capability has not been decided, Atlantic Shores has a purpose for 1.3 GW, “which might align with the interconnection building and repair agreements Atlantic Shores intends to execute sooner or later with the regional transmission group (RTO), PJM,” BOEM mentioned.
The undertaking is roughly 8.7 miles offshore New Jersey at its closest level. “To offer power to New Jersey, Atlantic Shores South proposed as much as 200 whole wind turbine mills and as much as ten offshore substations with subsea transmission cables probably making landfall in Atlantic Metropolis and Sea Girt, New Jersey. BOEM has accredited building of as much as 195 wind turbine mills,” the company famous.
If constructed, Atlantic Shores would contribute to New Jersey’s purpose of 11 GW of offshore wind power technology by 2040, as outlined in New Jersey Governor’s Government Order No. 307, which was issued on September 2022. Mission 1, notably, is meant to meet the New Jersey Board of Utilities’ (BPU’s) September 2020 solicitation for 1,200 to 2,400 MW of offshore wind capability. The BPU order identifies 1,509.6 MW of offshore wind power because the required capability for the undertaking.
PJM and the BPU in February notably agreed to a “State Settlement Method Research Settlement,” which seeks to benefit from PJM’s experience and planning course of to solicit transmission options to serve New Jersey’s offshore wind objectives. “New Jersey is the primary state to make use of PJM’s State Settlement Method course of to advance public coverage objectives. PJM’s work with NJBPU beneath the SAA has been cited as a mannequin for different states to develop the transmission infrastructure wanted for their very own power insurance policies,” famous PJM.
“Right this moment’s announcement is the direct results of greater than 5 years of stakeholder engagement and greater than 40 environmental research to soundly and responsibly progress Atlantic Shores Mission 1 and a pair of,” mentioned Jennifer Daniels, Improvement Director, Atlantic Shores Offshore Wind. “I’m so happy with our staff’s tireless efforts to safe these essential approvals and convey us one step nearer to delivering clear power to a couple of million houses.”
Progress Regardless of Latest Market Turmoil
BOEM’s actions introduced this week mark new momentum for the offshore wind sector, which has suffered headwinds owing to rising inflation, provide chain disruptions, and excessive rates of interest which have elevated undertaking prices and financing challenges.
In October 2023, Ørsted canceled its improvement of Ocean Wind 1 and a pair of, a mixed 2.2 GW undertaking that it had deliberate off the coast of southern New Jersey. The corporate, nevertheless, agreed to take a closing funding choice on the 704-MW Revolution Wind undertaking, which it’s growing with utility Eversource. Building on that undertaking off the Connecticut coast is ongoing. It’s anticipated to start business operations in 2025.
Ørsted owns and operates one of many first offshore wind initiatives within the U.S.—the 30-MW Block Island Wind Farm. Nevertheless it has since additionally introduced on-line the 130-MW South Fork Wind 35 miles east of Montauk Level. The 12-turbine South Fork undertaking, which started business operation in March, holds the historic distinction as the primary commercial-scale offshore wind farm within the U.S.
Rather more progress is on the horizon. BOEM on Tuesday famous it has held 4 offshore wind power lease gross sales, together with these offshore New York, New Jersey, and the Carolinas and the first-ever gross sales offshore the Pacific and Gulf of Mexico coasts. The Inside Division additionally lately introduced a schedule of as much as 12 further lease gross sales by means of 2028.
In January, BOEM accredited a COP for the two.6-GW Coastal Virginia Offshore Wind (CVOW) undertaking. Dominion Power anticipates the huge undertaking—comprising 176 14.7-megawatt Siemens Gamesa generators—offshore Virginia will likely be accomplished in late 2026.
Improvement of the CVOW undertaking stays on time and on finances” regardless of latest market turmoil, Dominion notes. “Our follow on main initiatives is to offer price certainty earlier than we file for evaluation and approval with the State Company Fee. For CVOW, we negotiated fixed-price contracts with our main offshore wind suppliers and locked in manufacturing slots earlier than the availability chain constraints emerged which have impacted different offshore wind initiatives,” it says. “At this level, greater than 90% of prices are mounted, and main offshore tools is in a sophisticated stage of fabrication, which supplies confidence in the price for CVOW.”
—Sonal Patel is a POWER senior editor (@sonalcpatel, @POWERmagazine).
